UAE central bank to develop National Payment Systems Strategy

With an aim to enable safe, efficient and customer-centric domestic and cross-border payments, the Central Bank of the UAE launched an initiative to develop a National Payment Systems Strategy. Under this strategy, the UAE Central Bank will ensure the payment systems are interoperable and well regulated, and will also work towards supporting the transformation of the UAE to a cashless society in the long run.

In a statement on Tuesday, Mubarak Rashid Al Mansouri, Governor of the Central Bank of the UAE, said the enablement of customer-centric payments will serve to drive the overall competitiveness level of the UAE economy and benefit the public and private ecosystem, while supporting the UAE smart government agenda.

"This will result in benefit- ing from higher quality services at a competitive cost, in addition to reduced transaction fees, greater levels of efficiency, improved collection cycles, and more innovative payment channels." The central bank will also consult and collaborate with the relevant stakeholders from the federal and local governments, other regulatory entities, financial and non-financial institutions, telecommunications companies, industry and other entities as part of this initiative.

Meanwhile, First Abu Dhabi Bank (FAB) said it has secured a licence from the Capital Market Authority to establish an investment banking subsidiary in Saudi Arabia.

The subsidiary, called FAB Investment KSA, is whollyowned by the bank and will provide arranging and advisory services throughout the Kingdom to corporate clients and institutions looking to access international markets.

In a statement, FAB said the subsidiary will enable the bank to grow and enhance its regional presence. Abdul Hamid Saeed, group chief executive officer of FAB, said the unit will open up "significant opportunities" for the bank's customers.

"The development will strengthen FAB's ability to tap into one of the largest economies and capital markets in the [Middle East and North Africa] region. I would like to highlight that establishing this subsidiary will further cement the strong relationship which exists between the UAE and Saudi Arabia in the financial sector," he said. Saeed said Saudi Arabia is "a catalyst to ignite further economic growth across the GCC."

FAB Investment KSA will provide a range of products to customers who are looking to access Saudi Arabia's market as well as international markets, the bank said.